Johnson & Johnson's Health and Wellness Program

Safe Fleet Program Contd...

After implementing the Safe Fleet Program, the number of accidents reduced significantly. According to Michael N. Ferrera, Manager, Safe Fleet, the crash rate in 2001 came down to 3.93 crashes per million miles, which depicted a 30% fall since the launch of the program.

The Benefits Reaped

To find out the impact of its HWP, the MEDSTAT group was asked to carry out an independent evaluation. The group scrutinized the medical insurance claims of 18,331 employees of J&J, who participated in the HWP during the period 1995 to 1999. The study thoroughly analyzed the medical expenditure of employees five years before and four years after the introduction of HWP.

The study revealed that J&J had enjoyed substantial financial benefits to the tune of $8.5 million in the form of annual savings in medical care costs of employees.

Most of the savings were realized in the third and fourth year of the implementation of HWP. The company saved $225 per employee annually due to the decrease in the number of hospital admissions, cases of mental health problems and outpatient services.

J&J also benefited due to increased employee productivity, lower benefit plan costs and reduced absenteeism. J&J's employees also lowered their health risks to a large extent in major risk categories.

Some of these categories included ill effects of tobacco consumption and sedentary work life, high hypertension, high cholesterol, low consumption of fiber-rich food and insufficient motor vehicle safety measures. Appreciating the benefits of HWP to J&J, Ronald J. Ozminkowski, Director, MEDSTAT said²⁹, "These results highlight the significant impact that integrating large-scale corporate health and productivity management programs can have on company medical expenditures."

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29] In an article titled "Employees benefit and Johnson & Johnson company saves $8.5 Million annually," posted on www.24hourfitness.com.

Case Details

Case Code : HROB025
Themes: HR Practices and Policies
Case Length : 14 Pages
Period : 1998-2001
Organization : Johnson and Johnson's
Pub Date : 2001
Teaching Note : Not Available
Countries : USA
Industry : Consumer Goods

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